RT-Invest negotiates loans for waste power plants with state banks
MOSCOW, Aug 22 (PRIME) -- RT-Invest, a subsidiary of Russian state industrial corporation Rostec, is negotiating a loan to build waste-fired power plants with state banks Gazprombank and Vnesheconombank (VEB), RT-Invest CEO Andrei Shipelov told PRIME on Wednesday.
In June 2017, subsidiaries of RT-Invest AGK-1 and AGK-2 won tenders for construction of four waste-fired power plants with a capacity of 70 megawatts (MW) in the Moscow region and one 55 MW plant in the republic of Tatarstan. Investment in the projects were estimated at 150 billion rubles.
УWe are holding negotiations with all large Russian banks. It will definitely not be one bank, as syndicates of banks usually finance such large projects. If a syndicate comprises three banks, it will speak about the quality of the project, and we will use that in the future while obtaining ratings for our company. We pay special attention to that, we are working with Gazprombank, and we are in negotiations with VEB,Ф Shipelov said.
In 2017, RT-Invest said that Swiss company Hitachi Zosen Inova, which provides technologies for the plants, would own 8% in AGK-1 and AGK-2. Shipelov said that the Swiss export agency, Hitachi, and Swiss banks that finance part of the equipment are also parts of the negotiation process, but RT-Invest will conduct the first round of talks on its own.
RT-Invest may issue green bonds in 2019 to finance the project, with pension funds, insurance companies, and banks becoming investors. The company plans to create a presentation of bonds in the next two to three months. In total, state nanotechnology company Rusnano and RT-Invest have already invested 6.5 billion rubles each into construction of the waste-fired power plants, he said.
УThis is first capital. The second stage of raising capital ends at the end of November. We have anchor investors for the second round of investment into the project, including the RDIF (Russian Direct Investment Fund) and Hitachi,Ф he said.
But Rostec will not invest in the project, despite owning 25% in RT-Invest, he said.
Payments from the wholesale power and capacity market will account for 70% of revenue of the future waste-fired power plants, while payments for production and processing of waste and sales of construction materials made from processed waste would account for 30%, he said.
The company also plans to launch two plants for secondary processing of waste in the Moscow Region until the end of 2018. The region produces about 11Ц12 million tonnes of waste per year, and RT-Invest contracted 4.5 million tonnes of waste. The company wants to create an integrated system of waste treatment, and will create joint ventures in order to improve economic feasibility of the plants, he said.
УWe plan to construct two first (plants) until the end of this year in the Kashirsky and Sergiyevo-Posadsky districts. The facilities will process 500,000 tonnes of waste per year each. The remaining six facilities will be launched until the end of 2019,Ф he said.
In total, Russia needs 30-40 waste-fired power plants as the country produces about 60 million tonnes of solid household waste per year, he said.
(67.1783 rubles Ц U.S. $1)